Tools Beginner

Landed Cost Calculator

Also known as: Import Cost Calculator, Total Cost Calculator, Duty Calculator

Definition

A landed cost calculator is a tool that helps importers estimate the total cost of getting a product from a foreign supplier to their warehouse or customer. It combines all cost elements to show the true “all-in” price.

What a Landed Cost Calculator Includes

Product Costs

  • Unit price
  • Quantity
  • Supplier discounts

Shipping Costs

  • Freight (ocean, air, truck)
  • Fuel surcharges
  • Origin charges
  • Destination charges

Import Costs

  • Customs duties
  • Brokerage fees
  • Port fees
  • Inspection charges

Taxes

  • Import VAT/GST
  • Excise taxes
  • Other government fees

Additional Fees

  • Insurance
  • Banking/wire fees
  • Currency conversion
  • Storage charges

Sample Calculation

Cost Element Amount
Product cost $10,000
Ocean freight $800
Insurance $100
Customs duty (8%) $800
Brokerage fee $150
Trucking $250
Total Landed Cost $12,100
Per-unit increase 21%

Types of Calculators

Online Tools

  • Free web-based calculators
  • Quick estimates
  • Limited customization

Shipping Software

  • Built into platforms
  • Integrated with orders
  • More accurate

Custom Spreadsheets

  • Tailored to your products
  • Flexible
  • Requires maintenance

Enterprise Solutions

  • ERP/TMS integration
  • Automated duty calculation
  • Audit trails

Key Inputs Needed

  • Product HS/HTS code
  • Country of origin
  • Shipping method
  • Product value
  • Weight and dimensions
  • Destination country

Why Use a Landed Cost Calculator

  1. Accurate pricing - Know true costs before selling
  2. Supplier comparison - Compare including all costs
  3. Margin protection - Don’t under-price imports
  4. Budget planning - Forecast import expenses
  5. Make vs. buy decisions - True domestic vs. import comparison
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